NXP Semiconductors expects to grow at CAGR of 5-7 percent by 2019

Reuters News
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Posted: Apr 28, 2016 9:30 AM

FRANKFURT (Reuters) - Chipmaker NXP Semiconductors expects to outperform its peers until 2019 by growing at a compound annual rate of between 5-7 percent, its financial chief said on Thursday.

The company, which completed its nearly $12 billion acquisition of Freescale last year, told investors it expected to reach adjusted earnings before interests, tax, depreciation and amortization (EBITDA) of more than $4 billion by 2019 as a result of combining businesses.

"The merger is going well," NXP's Financial Chief Dan Durn said at the company's capital markets day.

It is the first time NXP gives an outlook for the combined businesses.

The company, which is the world's top maker of automotive electronics, had earlier said it expects Freescale to be accretive to NXP's earnings this year with cost savings of $200 million, resulting in annual cost savings of $500 million in the mid-term.

(Reporting by Harro ten Wolde; Editing by Tina Bellon)